Arlington, VA, April 29, 2009 - CACI International Inc (NYSE:CAI), a leading professional services and information technology solutions provider to the federal government, announced results today for its third fiscal quarter and nine months ended March 31, 2009. CACI provides innovative solutions to meet America's needs in national defense, intelligence, homeland security, and the improvement of government services, and is a leading strategic consolidator in its market space.
Third Quarter Results
For the third quarter of Fiscal Year 2009 (FY09), we reported record revenue of $674.0 million, up 6.3 percent over third quarter of Fiscal Year 2008 (FY08) revenue of $634.2 million. The increase in revenue during the quarter was driven by organic growth of 5.5 percent. Organic growth for federal government revenue in the quarter was 6.7 percent. Operating income for the quarter was $45.0 million, up 3.5 percent compared with operating income of $43.5 million in the year earlier quarter. The operating margin was 6.7 percent compared with 6.9 percent in the third quarter of FY08. Income before taxes for the quarter was $39.7 million, 8.2 percent higher than what was reported in the third quarter of FY08. Our effective tax rate increased to 41.0 percent from 39.3 percent in the year earlier quarter. During the third quarter of FY09, our effective tax rate continued to be negatively impacted by non-deductible losses on assets invested in our deferred compensation plan. Net income for the third quarter was $23.4 million, up 5.1 percent compared with $22.3 million for the third quarter of FY08. Diluted earnings per share were $0.77, up 5.7 percent, compared with $0.73 per diluted share in the year earlier quarter. Cash generated by operations was $80.1 million, up 27.7 percent compared with $62.8 million in the year earlier quarter. Days sales outstanding at the end of the quarter were 61 compared with 67 days at the end of the third quarter of FY08. Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure, were $56.7 million in the quarter compared with EBITDA of $55.8 million in the third quarter of FY08.
Third Quarter Highlights
Major highlights and accomplishments during the third quarter of FY09 include:
Commenting on the results, Paul Cofoni, CACI's President and CEO, said, "We are very pleased with our record third quarter results: revenue, net income, earnings per share, operating cash flow, and contract funding orders. Our U.S. Operations turned in another solid quarter, and our United Kingdom operations grew revenue and earnings sequentially. Our positive performance through the first three quarters of the fiscal year validates our fundamental strategy of focusing our services and solutions on the key areas of defense, intelligence, and homeland security. We expect the government to continue to rely on the valuable and proven contributions of contractors in these areas to counter the very real and dangerous external threats that still face our nation.
"Throughout our history, we have consistently positioned ourselves with high-value solutions in areas requiring the highest levels of thought leadership and IT and professional services capability. These are areas that demand the very best services and solutions. CACI's strategy is to provide customers with the best solutions while assuring American citizens of the most effective use of their hard-earned dollars. Our solutions are aligned with the administration's focus on cyber security, smart power, and IT modernization, where we expect our services to remain in high demand. The Intelligence Community is another well-funded and high-demand / high-value area that continues to provide opportunities for CACI. We are particularly proud of our ISR and document exploitation capabilities, which bring critical value to our clients.
"Over our 47-year history, we've grown with every administration and adjusted to market changes with new solutions that meet client requirements while enhancing shareholder value. Our forward indicators are strong, we are winning Tier 1 contracts at a record rate, and have a robust pipeline of opportunities. Our balance sheet, backlog, and cash flow are rock solid. CACI leads in our markets, brings value to our clients, delivers on our commitments, and builds long-term shareholder trust and value."
Nine Months FY09 Results
For the first nine months of FY09, we reported record revenue of $2.00 billion, up 13.4 percent over the first nine months of FY08 revenue of $1.77 billion. Operating income in the first nine months of FY09 was $131.5 million, up 12.9 percent, compared with $116.5 million reported in the first nine months of FY08. The operating margin was 6.6 percent for the first nine months of FY09, the same as in the year earlier period. Income before taxes for the first nine months of FY09 was $114.4 million, 17.0 percent higher than what was reported in the first nine months of FY08. The effective tax rate for the first nine months of FY09 was 41.9 percent versus 38.9 percent in the year earlier period. Net income for the first nine months of FY09 was $66.5 million, up 11.3 percent, compared with net income of $59.8 million for the first nine months of FY08. Diluted earnings per share were $2.18, up 11.7 percent, compared with $1.96 per diluted share in the year earlier period. Operating cash flow for the first nine months of FY09 was $94.5 million, up 20.2 percent, compared with $78.6 million for the similar period in FY08. EBITDA for the first nine months was $166.7 million, an increase of 9.8 percent over EBITDA of $151.8 million in the first nine months of FY08.
CACI Revises its FY09 Earnings Guidance Range Upwards
We are raising the lower end of the range of our Fiscal Year 2009 earnings guidance. The table below summarizes the guidance ranges for FY09:
We are raising the lower end of the ranges of our net income and diluted earnings per share guidance as a result of stronger third quarter sales for our United Kingdom subsidiary and an estimated lower full year tax rate of 42 percent. This guidance does not include any contributions from future acquisitions.
This guidance represents our views as of April 29, 2009. Investors are reminded that actual results may differ from these estimates for the reasons described in this release and in our filings with the Securities and Exchange Commission.
Conference Call Information
We have scheduled a conference call for 8:30 AM Eastern Time Thursday, April 30th, during which members of our senior management team will be making a brief presentation focusing on third quarter results and operating trends followed by a question-and-answer session. You can listen to the conference call and view the accompanying exhibits over the Internet by logging on to our homepage, www.caci.com, at the scheduled time, or you may dial 1-877-741-4244 and enter the confirmation code 1040812. A replay of the call will also be available over the Internet beginning at 1:00 PM Eastern Time Thursday, April 30th, and can be accessed through our homepage (www.caci.com) by clicking on the CACI Investor Info button.
CACI International Inc provides the professional services and IT solutions needed to prevail in today's defense, intelligence, homeland security, and federal civilian government arenas. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR integration services; cyber solutions; integrated security and intelligence solutions; and program management and SETA support services. CACI services and solutions help our federal clients provide for national security, improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. We add value to our clients' operations, increase their skills and capabilities, and enhance their missions. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. CACI provides dynamic careers for approximately 12,300 employees working in over 120 offices in the U.S. and Europe. CACI is the IT provider for a networked world. Visit CACI on the web at www.caci.com and www.asymmetricthreat.net.
There are statements made herein which do not address historical facts, and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the following: regional and national economic conditions in the United States and the United Kingdom, including conditions that result from a prolonged recession; terrorist activities or war; changes in interest rates; currency fluctuations; significant fluctuations in the equity markets; failure to achieve contract awards in connection with recompetes for present business and/or competition for new business; the risks and uncertainties associated with client interest in and purchases of new products and/or services; continued funding of U.S. government or other public sector projects, based on a change in spending patterns, or in the event of a priority need for funds, such as homeland security, the war on terrorism, rebuilding Iraq or an economic stimulus package; government contract procurement (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the results of government investigations into allegations of improper actions related to the provision of services in support of U.S. military operations in Iraq; the results of government audits and reviews conducted by the Defense Contract Audit Agency or other governmental entity with cognizant oversight; individual business decisions of our clients; paradigm shifts in technology; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); market speculation regarding our continued independence; material changes in laws or regulations applicable to our businesses, particularly in connection with (i) government contracts for services, (ii) outsourcing of activities that have been performed by the government, (iii) competition for task orders under Government Wide Acquisition Contracts ("GWACs") and/or schedule contracts with the General Services Administration; and (iv) accounting for convertible debt instruments; our own ability to achieve the objectives of near term or long range business plans; and other risks described in our Securities and Exchange Commission filings.
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